Worker Retention, Benefit Cost Containment Top HR
Concerns

November 14, 2001 (PLANSPONSOR.com) - Hanging on to
their employees while keeping a rein on benefit expenses
apparently is the most pressing issue on corporate
executives' minds these days, a new survey finds.

According to the survey by MetLife, approximately
three-quarters of employers view employee retention (78%)
and controlling health/welfare benefits costs (73%) their
most critical benefits objectives. That’s ahead of
attracting employees (51%) and increasing employee
productivity (29%). MetLife released the study
Wednesday.

In support of these objectives:

58% of employers rate work/life balance as one of
their most important benefits strategies

38% rate employee self service on the net as their
most important strategy

24% name cost shifting to employees as a corporate
strategy.

More than 90% of employers surveyed currently provide at
least one voluntary benefit to their employees — most
commonly an optional term life insurance policy.
Approximately 80% of these employers report positive or
very positive employee receptivity to such offerings.

Most Popular Products

The voluntary offering likely to grow the fastest is
long-term care insurance, with 12% of employers expecting
to add it over the next 18 months.

Other rapidly growing insurance and other offerings
include:

auto and homeowners insurance (8% plan to add over
the next 18 months)

pre-paid legal services (8%)

retirement planning/financial planning (8%)

vision (6%)

concierge (6%)

pet insurance (3%).

Web-Enabled Benefits

Another important area of growth is the Web-based
delivery of employee benefits.

The survey also found that the percentage of employers
using Web sites for employee benefits will nearly double
over the next 18 months.

More than 30% of the mid-size and large employers
surveyed plan to add e-capabilities over the next 18
months, as do 22% of small businesses. Currently
approximately 40% of mid-size and large employers and 18%
of small employers offer e-capabilities.

Currently, the most popular Internet features are benefits
communication and retirement planning/education. Over the
next 18 months, employers expect web-based enrollment and
eligibility verification to increase significantly.

The study, titled 2001 MetLife Study of Employee
Benefits Trends, surveyed 481 benefits and compensation
professionals at US companies with more than 50 employees
in June 2001.